China Zheshang Bank issued first green bond of RMB5 billion

Recently, China Zheshang Bank successfully issued RMB5 billion green bonds with a coupon of 3.42% and a maturity of 3 years, which was 4.3 times oversubscribed, marking the bank’s first green bonds.

Recently, China Zheshang Bank successfully issued RMB5 billion green bonds with a coupon of 3.42% and a maturity of 3 years, which was 4.3 times oversubscribed, marking the bank’s first green bonds.

The funds will be used specifically for green industry projects that are in line with the central bank’s policy and the Green Bond Endorsed Project Catalogue, covering sectors including environmental protection, energy conservation, clean energy and clean transportation.

The bonds have been publicly issued in the national inter-bank bond market in the form of centralized allocation based on the results of bookbuilding. China Cheng Xin International Credit Rating Co. Ltd (CCXI) has given the bond an AAA rating。Investors subscribe to the bonds enthusiastically, and the pricing is the lowest interest rate for commercial bank bonds since 2017, which means that the market recognizes the bank’s green financial business.

By the end of June 2019, the green loan balance of China Zheshang Bank increased by more than 50% compared with the same period last year.

At the same time, the bank itself actively implemented low-carbon operations. By the end of June 2019, the adoption rate of electronic banking channels of China Zheshang Bank was 98.91%.

In terms of green services, we should set up specialized teams for green enterprises and innovatively design liquidity services such as pooled financing, easy corporate banking and the “three major platforms” of receivables chain, so as to reduce financing costs and energy consumption costs of green enterprises; enrich financing channels for green industries and provide diversified and comprehensive financial services.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/06/07/china-zheshang-bank-issued-first-green-bond-of-rmb5-billion/.

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